Cuts to Medicaid, PeachCare unlikely

Hundreds of thousands of low-income Georgians might not see benefits reduced

Posted: Thursday, August 25, 2005

ATLANTA

Hundreds of thousands of low-income Georgians are unlikely to face more cuts to their state-funded health care in the coming fiscal year, which begins July 1, 2006, officials who oversee the programs said Thursday.

Thanks to tougher antifraud efforts and a larger-than-expected surplus, the Department of Community Health now expects to be able to balance the budget for its joint state-federal Medicaid program without cutting benefits.

Earlier predictions by Chief Financial Officer Carie Summer warned that the department might have to slice as much as $388 million from the programs.

Consumer health advocate Linda Lowe praised the department for finding a way to save money without cutting benefits.

Lowe said she hoped the state would put any extra money toward increasing PeachCare's dental benefits - cut this year to save funding - or allowing children to stay eligible for the program, at least temporarily, regardless of any increase in their family's income.

"For children, it's so important to have a stable source of health care," Lowe said.

But Community Health Commissioner Tim Burgess warned about getting too eager to use the new money, some of which will be one-time savings. "I think that opportunity to do more has to be couched in what we had to do to get to the break-even point," he said.